Statutory Complaince and Due dillegence services

Differentiation between Student and Employee- Status of Student-Trainees of Educational/ Technical Institutes Recognized by Central/ State Government.

The Employees provident fund and miscellaneous act 1952, has made it clear a relationship does not exist between employer employees, who are on industrial or on the job training as an integral component of a recognized course of an Educational/Technical institute which is recognized by the Central/State Government or any other authority constituted by the Central/State Government.

Hence, the payment of the stipend, if any, provided by the industry to such Student/ Trainees do not attract the provisions of the Employee Provident Funds & Miscellaneous Provisions Act, 1952.

However, for the students getting placed in the companies and appointed as employees of establishment, Employee Provident Funds & Miscellaneous Provisions Act, 1952 will be applicable on such employees even during on-the-job training/induction/other training taken after becoming an employee.

Find the attached document for more info.

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